Pharmacy Pricing

Question 1

Pharmacy Pricing

Manufacturers: Selling (Who, Price)

Answer 1

• Wholesalers and Pharmacies
• AMP or WAC

Question 2

Pharmacy Pricing

Wholesalers: Selling (Who, Price)

Answer 2

• Retailers
• WAC + Markup or Discount off AWP

Question 3

Pharmacy Pricing

Wholesalers: Buying (Who, Price)

Answer 3

• Manufacturers
• AMP or WAC

Question 4

Pharmacy Pricing

Retailers: Buying (Who, Price)

Answer 4

• Wholesalers and Manufacturers
• AAC

Question 5

Pharmacy Pricing

Retailers: Selling (Who, Price)

Answer 5

• Consumers
• U&C Price

Question 6

Pharmacy Pricing

AMP

Answer 6

Average Manufacturer Price

• Manufacturers sell to wholesalers/retailers at AMP

Question 7

Pharmacy Pricing

WAC

Answer 7

Wholesale Acquisition Cost

• Manufacturers sell to wholesalers at WAC
• Wholesalers sell to retailers at WAC + Markup

Question 8

Pharmacy Pricing

AWP

Answer 8

Average Wholesale Price

• Wholesalers sell to retailers at discount off AWP

Question 9

Pharmacy Pricing

AWP and WAC relationship

Answer 9

WAC = 83.33% of AWP

Question 10

Pharmacy Pricing

AAC

Answer 10

Actual Acquisition Cost

• Price retailers buy from manufacturers/wholesalers at

Question 11

Pharmacy Pricing

U&C PRice

Answer 11

Usual and Customary price

• Price retailers sell to consumers/insurers at (AAC + Markup)

Question 12

Pharmacy Pricing

MAC

Answer 12

Maximum Allowable Cost

• Price that PBMs/insurers negotiate with retailers for generic drugs

Question 13

Pharmacy Pricing

Manufacturer Rebates

Answer 13

% of WAC on brand drugs

Question 14

Pharmacy Pricing

Differences between US and Canada Drug Pricing

Answer 14

• Canada’s Manufacturer Selling Price = Manu. List Price (MLP)
• Price for generics are capped at % of brand in Canada
• Generic drug rebates are common in Canada